HomeMy WebLinkAboutO-1855 - Amends Sec. 1 of Ord. 1694, sewage system (Special)'...
CITY OF MARYSVILLE,WASHINGTON
ORD INANCE .NO .1&:5<
AN ORDINANCE of the City of Marysville,
Washington,relating to the waterworks utility of the
system,including the sewerage system of the City as a
part thereof;amending Ordinance No.1694;providing
for the issuance of a water and sewer revenue bond
anticipation note to pay part of the cost of carrying
out the plans of additions to and betterments and
extensions of the waterworks utility of the City
specified and adopted by Ordinances Nos.987 and
1635-A and applicable to Utility Local Improvement
Districts Nos.13 and 14;creating a water and sewer
revenue bond anticipation note fund;and providing for
the sale and delivery of that note to Security Pacific
Bank Washington,NA,Seattle,Washington.
WHEREAS,the City of Marysville,Washington (the "City"),by
Ordinance No.385 passed September 2,1952,combined the
sewerage system of the City and all additions and improvements
thereto with the waterworks utility of the City,and the
sewerage system at all times since has been considered a part .of
and belonging to the waterworks utility of the City,and the
words Waterworks Utility hereinafter shall mean the combined
sewerage system and water system of the City,together with all·
additions thereto and betterments and extensions thereof
hereafter made;and
WHEREAS,pursuant to Ordinance No.937 passed July 9,1979,
the City Council in adopting the Lower Snohomish River Basin
Wastewater Facilities Planning Study for the Marysville
Subregion specified and adopted a system or plan of additions to
apd betterments and extensions of the Waterworks Utility;and
WHEREAS,by Ordinance No.1635-A the City specified,adopted
and ordered the c arrya.nq out of a system .or plan of additions to
and betterments and extensions of the Waterworks Utility,
created Utility Local Improvement District No.13 ("ULID
No.13")for the purpose of carrying out that system or plan,
estimated the cost thereof to be $118,000 and authorized the
issuance of approximately $118,000 principal amount of water and
sewer revenue bonds to pay the cost of carrying out that system
or plan and,pending the receipt of the proceeds of the issuance
and sale of those bonds,for the issuance of short-term
obligations pursuant to Chapter 39.50 RCW;and
WHEREAS,by Ordinance No.1730 the City approved and
confirmed the assessments and assessment roll of ULID No.13 in
the amount of $99,000;and
WHEREAS,by Ordinance No.1694 the City ordered the carrying
out of the portion of the system or plan of additions to and
betterments and extensions of the waterworks utility specified
and adopted by Ordinance No.937 and applicable to Utility Local
Improvement District No.14 ("ULID No.14"),created ULID No.14
for the purpose of carrying out that system or plan,estimated
the cost thereof to be $104,000 and authorized the issuance of
approximately $104,000 principal amount of water and sewer
revenue bonds to pay the cost of carrying out that system or
plan and,pending the receipt of the proceeds of the issuance
and sale of those bonds,for the issuance of short-term
obligations pursuant to Chapter 39.50 RCW;and
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WHEREAS,due to the increase in cost of constructing the
improvements in ULID No."14 the City Council has determinedi t
necessary to amend Ordinance No.1694 to provide for the
increased cost;and
WHEREAS,the City Council has determined it to be in the
best interest of the City to issue its $275,000 principal amount
of water and sewer revenue bond anticipation notes to pay the
cost of carrying out the improvements in ULIDs Nos.13 and 14
and Security Pacific Bank Washington,NA,has offered to
purchase those notes as a single note under the terms and
conditions hereinafter set forth;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO
ORDAIN as follows:
Section 1.Amendment of Ordinance No.1694.Section 1 of
Ordinance No.1694 is amended to read as follows:
Section 1.The City orders the carrying out of the portion
of the system or plan of additions to and betterments and
extensions of the waterworks utility of the City adopted by
Ordinance No.937 applicable to the property described in
Exhibi t A attached hereto consisting of the construction and
installation of an 8-inch and 10-inch sanitary sewer main and
appurtenances along Smokey Point Boulevard (35th Avenue N.E.)
from 174th Place N.E.north to 180th Street N.E.and along 178th
Place N.E.from Smokey Point Boulevard easterly for
approximately 300 feet (the "Plan of Additions").The estimated
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cost of the acquisition,construction and installation of the
Plan of Addi tions is declared to bej·as nearly as maybe,the
amount of $176,000,and such estimated cost shall be met and
defrayed from the proceeds received from the issuance and sale
of water and sewer revenue bonds of the City in the amount of
approximately $176,000.Such water and sewer revenue bonds
shall be supported by assessments to be levied and assessed
against properties specially benefited by the improvements to be
included in Utility Local Improvement District No. 14 created
herein.
Section 2.Creation of Note Fund;Description of Note.
There is created and established in the office of the City
Clerk-Treasurer a special fund to be known as the Water and
Sewer Revenue Bond Anticipation Note Fund,1991 (the "Note
Fund").
Pending the issuance of the water and sewer bonds authorized
by Ordinances Nos.1635-A and 1694,as herein amended,the City
shall issue and sell its Water and Sewer Revenue Bonds
Anticipation Note,1991 (the "Note"),in the principal amount of
$275,000.The Note shall be dated the date of its issuance,
shall mature one year thereafter,and shall bear interest at a
variable rate to be determined hereafter by the Finance Director
of the City,such rate to be no greater than 90%of the
published Large Business Prime Rate or Prime Rate (the "Prime
Rate")of Security Pacific Bank Washington,NA,calculated on
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the basis of a 360-day year for actual number of days elapsed,
adjustable immediately to reflect any change in the Prime Rate,
and payable quarterly on December 5,1991,March 5,1992,
June 5,1992,and at maturity.If the Note is not redeemed upon
proper presentment at its maturity or call date,the Note shall
bear interest at the same variable rate until both principal and
interest are paid in full or until sufficient money for that
payment in full is on deposit in the Note Fund and the Note has
been duly called for redemption.In providing for the above
variable interest rate index,the City Council considers and
finds the same to be in the best interest of the City.
Section 3.Payment of Note.The Note,both principal and
interest,shall be payable in lawful money of the United States
of America at the office of the City Finance Director in
Marysville,Washington.
Section 4.Optional Redemption.The City reserves the
right and option to redeem the Note at any time on giving two
business days'written notice to Security Pacific Bank
Washington,NA,at its principal office in Seattle,Washington.
Section 5.Source of Payment.Both principal of an
interest on the Note shall be payable solely out of the Note
Fund from the proceeds of the water and sewer revenue bonds
authorized to be issued by Ordinances Nos.1635-A and 1694,as
herein amended,to be deposited in that fund,from assessments
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against properties benefitted by the improvements,from the
proceeds .of bonds ...payable -.from ···those .assessments ,from the
proceeds of other short-term obligations issued to redeem
previous ly issued and then outstanding notes,or from other
money legally available and to be used therefor,and the City
irrevocable pledges to redeem the Note on its maturity date from
the proceeds of those bonds,assessments,additional short-term
obligations or other money available for that purpose.
The Note may be paid from the revenue of the Waterworks
Utility of the City,but the claim of the Note shall be
subordinate to the claims on that revenue of the normal expenses
of maintenance and operation of the Waterworks Utility,any
outstanding water and sewer revenue bonds of the City payable
from that revenue and bonds issued on a parity of lien therewith.
Section 6.Authorization of Finance Director to Fix
Interest Rate.The Director of Finance is authorized and
directed to negotiate with Security Pacific Bank Washington,NA,
and to fix the variable interest rate of the Note in accordance
with the terms of this ordinance.
Section 7.Execution and Form of Note.The Note shall be
typed or multicopied on good bond paper in a form consistent
with this ordinance and State law.The Note shall be signed by
the Mayor and the City Clerk and shall have the seal of the City
affixed thereto.The appropriate officers of the City are
authorized and directed to take all actions necessary in
connection with the issuance of the Note.
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Section 8.Note Negotiable Instrument.The Note shall be a
negotiable-instrument to the extent provided by RCW 62A.8-102
and 62A.8-105.
Section 9.Preservation of Tax Exemption for Interest on
Note.The City covenants that it will take all actions
necessary to prevent interest on the Note from being included in
gross income for federal income tax purposes,and it will
neither take any action nor make or permit any use of proceeds
of the Note or other funds of the City treated as proceeds of
the Note at any time during the term of the Note which will
cause interest on the Note to be included in gross income for
federal income tax purposes.The City also covenants that,to
the extent arbitrage rebate requirements of Section 148 of the
Internal Revenue Code of 1986,as amended (the "Code"),are
applicable to the Note,it will take all actions necessary to
comply (or to be treated as having complied)with those
requirements in connection with the Note,including the
calculation and payment of any penal ties that the City has
elected to pay as an alternative to calculating rebatable
arbitrage,and the payment of any other penalties if required
under Section 148 of the Code to prevent interest on the Note
from being included in gross income for federal income tax
purposes.The City certifies that it has not been notified of
any listing or proposed listing by the Internal Revenue Service
to the effect that it is a bond issuer whose arbitrage
certifications may not be relied upon.
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section 10.Acceptance of Purchase Offer and Disposition of
Note Proceeds.Security Pacific Bank Washington,NA,Seattle,
Washington,has submitted an offer to purchase the Note under
the terms of the Note purchase contract (the "Note Purchase
Contract")on file with the City Clerk,the City to furnish the
typewritten or multicopied Note and the approving legal opinion
of Foster Pepper &Shefelman,municipal bond counsel of Seattle,
Washington,at the City's expense.Bond counsel shall not be
required to review or express any opinion concerning the
completeness or accuracy of any official statement,offering
circular or other sales material issued or used in connection
with the Note,and bond counsel's opinion shall so state.The
City Council,deeming it to be in the best interests of the City
that the offer be accepted,accepts the same.The Note shall be
delivered to Security Pacific Bank Washington,NA,in Seattle,
Washington,immediately upon its execution upon payment therefor
in accordance with that offer.
The principal proceeds received from the sale of the Note
shall be deposited in the City's Utility Construction Fund,and
used to pay the Costs of the improvements in ULIDs Nos.13 and
14,including the repayment of any interfund loans made to pay
those costs.
Section 11.Effective Date of Ordinance.This ordinance
shall take effect and be in force from and after its passage and
five days following its publication as required by law.
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PASSED by the City Council and APPROVED by the Mayor of the
City of Marysville,Washington,at a regular open public meeting
thereof,this 26th day of August,1991.
ATTEST:
APPROVED AS TO FORM:
-Ci ty Attorney
MLC-1970'
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